The Growth of hedge funds: The reasons for a sustained progress and its effects on the UK investments market - Essay Example

Comments (0) Cite this document
The interests of the hedge funds are not sold in a registered public offering. Additionally, they are not registered under the Investment Company Act…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER91.5% of users find it useful
The Growth of hedge funds: The reasons for a sustained progress and its effects on the UK investments market
Read TextPreview

Extract of sample "The Growth of hedge funds: The reasons for a sustained progress and its effects on the UK investments market"

Download file to see previous pages They are beneficial to the financial markets because they enhance liquidity and ensure that there is market efficiency. Thus, the essay discusses the reasons for a sustained progress and its effect on the UK’s investment market.
Recently, hedge funds have become investment vehicles. There are different aspects of the hedge funds which include potential and existing investors, investment portfolio, regulatory framework, different strategies which are adopted and the return profiles of the funds in relation to the assets which are available (Gregorious 2003, p. 51). In the UK, the hedge funds were used to compound the crisis. They were used most of the time because they are free from the regulatory restrictions, which are faced by most of the other investment vehicles in the country.
Consequently, hedge funds have become popular among the investors because they bring about a systematic financial system. Additionally, hedge funds are an integral part in the development of the financial activities and financial market all over the world. Hedge funds play a big role in the United Kingdom because of the global business hub and the presence of the free market mechanism. In addition, the presence of the plethora of products and services in United Kingdom opens up an avenue for the use of the hedge funds (Gregorious 2003, p. 21). The presence of different avenues gives the investors a chance to invest in diversified or specific assets. The assets range from foreign exchange to real sector assets such as real estates, infrastructure, and manufacturing. They can also be financial assets such as commodities, stocks, and bonds.
Through the hedge funds, investors are exposed to a wide range of trading activities and assets. Regulators permit the hedge funds to be exposed to risks that other investment funds are not allowed to take. Notably, the hedge funds are strategically oriented. The strategy may involve taking an exposure to arbitrage opportunities, the ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“The Growth of hedge funds: The reasons for a sustained progress and Essay”, n.d.)
Retrieved from
(The Growth of Hedge Funds: The Reasons for a Sustained Progress and Essay)
“The Growth of Hedge Funds: The Reasons for a Sustained Progress and Essay”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF The Growth of hedge funds: The reasons for a sustained progress and its effects on the UK investments market

How effective have The European institutions been in dealing with the economic crisis

...or make disclosures (Dolls, Clemens & Peichl, 2009). That being said, their proposals had initial differences, namely the third country clause in which EU member countries need to give hedge funds in industries permission to operate within their borders - which was promptly scrapped upon objection from both the US and the UK (World Bank Growth Commission Report, 2010). Another one is the exemption clause, which simply means that hedge funds and private equity groups with more than 250 employees are exempt from these regulations (Belka, 2009). Bank Tax to Set Up Resolution Fund A plan was proposed by the European...
52 Pages(13000 words)Dissertation

ARCH modeling: forecasting the return in the UK stock market

...the utility of mathematical models that attempt to quantify market behavior, it is helpful to explore the scope of macroeconomic variables that underlie all of our attempts to craft useful market models. Uncertainty concerning monetary policy leads to a phenomenon which Gregoriou (2009) describes as policy shock. In the UK, this can result from changes in the three-month sterling LIBOR futures contract, which occurs during meetings of the England Monetary policy committee. And the actions of this committee have ripple effects for investments of any size. Yet other analysts, (Lildholdt and Wetherilt, 2004) project an increasing accuracy in terms of the...
55 Pages(13750 words)Dissertation

Easuring Investment Performance. International Investments. Hedge Funds and the Madoff Scandal

...from making the right choices, such as whether to put more weight in emerging markets or in detecting financial “bubbles” early enough. (396). Bernard Madoff and his Ponzi Scheme – Madoff was able to pull off his swindle despite several doubts from his investors because of a number of things which perpetuated his scheme. A good number of “red flags” or warning signs were ignored by both the regulators and investors. The most flagrant or obvious sign that his investment fund was a scam was its consistent profits or return on investments (ROI) even during the worst kind of market downturns. In other words, his fund...
3 Pages(750 words)Essay

Hedge and Exchange Rate Effects

.... Whilst the interest rate discrepancies on the forward FX agreements will consistently cause a reconcilable disagreement, other problems simply permit investment administrators to supervise the hedged currency share classes on a best-contribution foundation (Viaene & Casper 1312). One of these is the impact of adjustments in the reserve’s market value. Consider a pound-prevaricated currency-class with a US$10 million portion of the reserves’ assets. Selling the US$10 million share in order to purchase pounds ideally hedges the exchange rate publicity for as long as the net asset value will decrease the efficiency of the hedge (Viaene & Casper 1312). ...
8 Pages(2000 words)Coursework

1920s - time of sustained economic progress

...). Soon enough, his approach was able to sustain economic growth for most of the 1920s. However, overconfidence in these economic policies also caused the stock market to crash, leading to the Great Depression. The sustained recovery during the early 1920s caused the Federal reserve to expand credit, as market rates were decreased; in effect, the value of the dollar increased by 60% during this time (Schultz, 349). This caused the Americans to over-extend their spending. As was mentioned above, such over-extension led to the stock market crash in the late 1920s, and the crash and the depression that followed was very much...
5 Pages(1250 words)Essay

Hedge Funds

...the market is not performing well due to recession or some other reason. However, a retail investor cannot invest in the hedge fund the same way as he would have done it for stocks or mutual funds. The operations of these funds fall beyond the control of any government regulation and hence it is mainly at the fund manager’s discretion that the investment portfolio would be designed, what strategies would be employed and which stocks are to be included. The main motive behind devising such a fund was to secure the funds from the market...
4 Pages(1000 words)Essay

Importance of sustained economic growth,

...a severe economic downturn period. In addition to this, the performance of the region with respect to the gross value added has been influenced by various factors which include supply chains, availability of credit, policies and regulations, etc. Sustained Economic Growth in South Western England and Future Economic Rebalancing Keeping in view the slow recovery shown by the economy in the post economic crisis period, it can be stated that there are various factors which are important for sustained growth in South Western England, while considering the future economic rebalancing. In general, it is the overall economy of the UK which influences the...
3 Pages(750 words)Essay

Hedge funds

...with 67 percent of the total hedge funds assets in 2007. Europe and Asia are the next large sources with 22 percent and 7 percent shares respectively. New York City is the world's leading city for hedge managers and it is followed by London. In New York, around 60 percent of hedge fund managers are stationed in this city. London has doubled its hedge funds investment since 2002. The reason for such increase is the growth of investment from institutional investors who are attracted by (1) risk diversification, (2) flexible...
5 Pages(1250 words)Essay

UK islamic funds performance effective hedges for the equity investors because of their inherent nature of being risk averse. The overall results therefore indicate that Islamic funds do not offer any abnormal risk adjusted reward to the investors and can only provide good investment opportunity specially during bursting period of asset bubbles. Contents CHAPTER ONE INTRODUCTION 4 1.1 Introduction 4 1.2 Research Objectives 5 1.3 Rational Justification of the Study 6 1.4 Structure of the dissertation 6 CHAPTER TWO ISLAMIC FUND 8 2.1 Introduction 8 2.2 Islamic and conventional funds: 11 2.3 Rules and Principles of Islamic Investing 12 2.4 Insights...
5 Pages(1250 words)Essay

Investment Management: Matual Funds, Hedge Funds, and Other Funds

...Investment Management: Mutual Funds, Hedge Funds, and Other Funds Contents Time weighted returns (TWR) 3 Importance of Time Weighted Returns to the Investors 4 References 5 Time weighted returns (TWR) Time weighted returns measures the compound rate of growth in a portfolio. This method is useful since it eliminates the distorting effects which are created due to inflow of new money. The true TWR of an asset requires as asset to be revalue at the point of each cash flow. The returns are then compounded together to form the TWR for the whole period. In effect a weighted average of sub period internal rates...
2 Pages(500 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic The Growth of hedge funds: The reasons for a sustained progress and its effects on the UK investments market for FREE!

Contact Us